Identifying and Correcting Excess Costs on the Principal Platform

Principal serves as a 401(k) recordkeeper and retirement plan platform. When fees are higher than expected in Principal-record-kept plans, the cause is usually structural, not the platform itself.

A Principal 401(k) high-fee review is designed for plan sponsors and fiduciaries who want to understand where costs originate, why they may have increased over time, and how they can often be improved without changing platforms or disrupting participants.

This service may be appropriate if you:

  • Suspect plan fees are higher than necessary
  • Are you receiving participant questions about costs
  • Have not benchmarked fees recently
  • Want to improve pricing without a complete plan overhaul

Why Fees Can Be High in Principal-Based Plans

Higher fees are commonly driven by:

  • Bundled pricing that becomes less competitive as the plan grows
  • Investment share classes that were appropriate years ago but not today
  • Revenue-sharing arrangements that obscure total costs
  • Layered advisory or administrative services

 

These issues often persist until reviewed deliberately.

What This Review Covers

This engagement focuses specifically on fee drivers within the Principal platform, including:

  • Plan-level and participant-level fees
  • Investment expense ratios and share class usage
  • Revenue-sharing and cost allocation methods
  • Advisor and service provider compensation
  • Practical opportunities to improve pricing inside the platform

The objective is cost clarity and improvement, not disruption.

Our Fiduciary Approach

Holland Capital Management operates under a fiduciary standard. This means:

  • Guidance is provided in the best interest of the plan and its participants, consistent with our fiduciary obligations
  • Compensation is transparent
  • No proprietary platforms or pricing incentives
  • Analysis precedes any discussion of change

Our role is to help fiduciaries address costs responsibly.

Who This Is Typically For

Principal high-fee reviews are commonly requested by:

  • Business owners sponsoring Principal-based plans
  • Plan committees reviewing expenses
  • Fiduciaries are concerned about fee reasonableness
  • Organizations preparing for benchmarking or audit review

You do not need to change recordkeepers to engage this service.

What the Process Looks Like

  • Introductory conversation to understand fee concerns
  • Review of fee disclosures and plan documents
  • Analysis of cost drivers and pricing structure
  • Discussion outlining observations and potential improvements

There is no obligation to implement any recommendation.

How This Fits Into Broader Fiduciary Oversight

Fee reasonableness is a core fiduciary responsibility. Improving pricing can:

  • Reduce fiduciary risk
  • Improve participant outcomes
  • Strengthen plan defensibility

For many plans, improvements are achievable within Principal, without changing platforms.

Can Holland Capital Management Help You Achieve Your Goals?  Schedule a complimentary, no-obligation second opinion. 

 

Let’s Talk 

Locations Where Principal 401(k) High-Fee Reviews Are Offered

Holland Capital Management provides Principal 401(k) high-fee reviews to clients in the following cities and regions:

Principal 401k High Fees Medical Practices

Principal 401k High Fees

Getting Started

If you oversee a Principal-record-kept 401(k) plan and are concerned about fees, the first step is a brief conversation to determine whether this review is appropriate.